> Referals from Realtors
Referals from Realtors
As there is a plethora of Realtors on this site I was hoping to get a real good answer for this question. First statistics I have read read that 68% of home buyers are refered to a mortgage broker from there Realtor. So my question is to the Realtor community or anyone else with insightful information how do you as a Realtor choose which Mortgage broker to refer your loans to? Also what should your Mortgage Broker being doing for you for free right now that he or she is not currently doing?
I am considering offering sales training in NLP as I am a Master NLP Practioner. I believe that if I could show Realtors how to close more deals it would improve their ratios ... business ... bottom line. Which I believe is what most Realtors want ... desire ... crave more of in the first place. This training cost between $1000 - $2000 a month with a 12 month commitment. And I would do it for the cost of 12 referrals per year.
Thanks in Advance for Your thoughts,
J- - by Jorel
...how do you as a Realtor choose which Mortgage broker to refer your loans to?
I am not a fan of mortgage brokers but... if I had to choose a mortgage broker I would consider the different programs being offered, the broker's reputation and business practices, and my own comfort level with those individuals at the brokerage that will be involved in the deal.
Also what should your Mortgage Broker being doing for you for free right now that he or she is not currently doing?
What would be an example of something the mortgage broker should be doing for free?
I believe that if I could show Realtors how to close more deals it would improve their ratios ... business ... bottom line.
Which NLP concepts would be of help in closing more deals? - by AZBroker
What would be an example of something the mortgage broker should be doing for free?
Which NLP concepts would be of help in closing more deals?
An example could be something like providing a free 800 number for your listings. Or keeping you abreast of happening in the mortgage industry, and questions your clients might have for you and ways to respond to those questions in order to make you look like the expert. Or even just refering you clients.
Some NLP Concepts that can help close more deals are things such as embeded commands, binds, advanced techniques for obtaining rapport, language patterns and sleight of mouth techniques for handling objections.
I trust I answered your questions, now let me ask you this, you said you are not a fan of mortgage brokers. Why do you say this? And what do you do when your clients ask you about getting financing to purchase a home? - by Jorel
...you said you are not a fan of mortgage brokers. Why do you say this? And what do you do when your clients ask you about getting financing to purchase a home?
Unfortunately my experiences with mortgage brokers were almost always dissappointing. I prefer to work with bankers who originate and fund their own loans. When a customer asks me about real estate mortgages I mention companies like Countrywide, Wells Fargo, etc. - by AZBroker
Unfortunately my experiences with mortgage brokers were almost always dissappointing. I prefer to work with bankers who originate and fund their own loans. When a customer asks me about real estate mortgages I mention companies like Countrywide, Wells Fargo, etc.
Your experiences are similar to mine. That is why I got in the business to make a difference for the better. I was going to refiance my home several years ago and spoke with one everything seemed fine, but I felt I needed to get a second opinion, you know that feeling you get in your gut when something is not right? Well I am glad a I did. This guy was going to charge me 5% the legal maximum for doing my loan. I spoke with another mortgage broker and they showed me what the first guy was doing (yield spread) and raising my interest rate to do it. So I went with the second guy. Well this guy did not know that the lender had its own appraisal department so I had to pay for two appraisals. I did not figure out why until I got in the business. He lied to me and just said that is what some banks do. Well yes some do require two appraisals if the property value is over a million dollars not the 250k my home was worth 10 years ago when I refied.
So you can see as a victim of the less than honest mortgage brokers out there I can see your point. I am sure you can also tell me some stories about less than ethical Realtors in your area. I know I have a few. The point I am trying to make is that it is not the industry but the individuals. Thanks for your post. - by Jorel
The point I am trying to make is that it is not the industry but the individuals.
I'm not confident that industry practices aren't part of the problem so mum's the word. ;wi - by AZBroker
I'm not confident that industry practices aren't part of the problem so mum's the word. ;wi
I'm sorry you feel that way.;cr What do you say when someone says that about Realtors? - by Jorel
Mum's the word. ;tmt - by AZBroker
I spent over 15 years in the mortgage industry as a loan officer, branch manager, regional manager and owner, so I've had the opportunity to work directly with REALTORS and to train loan officers.
Here's the problem you face when seeking to build a relationship with a REALTOR:
First, they get hit up several times a week from loan officers--so they have heard it all--even relatively new REALTORS quickly hear all the typical stuff about how great the LO is; how they can get every one of their buyers approved, no matter what; all the great "unique" programs the LO has; how quick they can get a buyer approved; how low their closing costs are; and all the rest.
Second, to be realistic, most everyone has the same products, pretty close to the same pricing and the same level of service--some are poor, some are OK, some are good, some are great, but no one is truly unique.
Third, no matter the company you work for, your pricing, or your level of service, they don't need you because there are dozens out there just as good or better.
Fourth, everyone wants to improve their customer service, but it isn't the absolute top priority--and again, they don't need you to accomplish that because there are dozens in the market just as good or better than you (I'm not picking on you in particular, but the reality is there isn't anyone who is head and shoulders "the best" on the street)
Fifth, their top priority is like everyone else's--increase business, and customer service isn't going to ignite that, only new quality prospects will. Finding those quality prospects is their priority.
So, that's the problem. You have to find a way to overcome it.
Fortunately, there are ways to overcome these issues. Unfortunately, they aren't easy and that's where most loan officers begin to flounder.
To become truly successful with REALTORS you must:
1. Change you mental attitude. Your question is all wrong. It isn't how do you get a REALTOR to refer customers. That's looking at the relationship as a one-way street where the money comes to you and you help improve the REALTORS "level of service." Rather you have to look at the relationship where your job is to drive business to your partner, not just take business from your partner. And "getting everyone approved" isn't going to help them make more money--because there are buyers that qualify and others that don't. You cannot get anyone approved that most other LO's can't get approved also.
2. You have to meet the REALTOR's primary need--more quality business. As above, money has to go both ways. Consequently, you have to be a source of business for the REALTOR, just as they are a source of business for you.
3. You have to concentrate on finding and working with successful REALTORS ONLY. Most REALTORS are in the same boat as you--struggling for business. Put a struggling LO and a struggling REALTOR together and you get--two people out of business.
4. Before you approach a REALTOR, you must develop a plan whereby you can show the REALTOR how you're going to increase their business by bringing them quality prospects. You have to focus on their needs, not yours.
5. You have to become a partner with the REALTOR. That doesn't mean paying for an 800 number or some of their advertising. It means finding real ways to help each increase their business (not improve, although that should also be a goal--but increase).
6. Most REALTORS you speak to will like the idea but not believe it. So, the burden of making it work is on you--you'll have to produce for the REALTOR before you can really expect a full commitment from them.
7. It isn't easy finding these relationships. You'll have to talk to a lot of REALTORS to find the partners you want. Not only do they have to be good producers, but they have to be someone you can really work with. That means you have to "interview" a large number to get a few. You'll have to develop a plan to find and meet with 90 quality REALTORS over the next 120 days to find a base of REALTORS who are the ones you want to work with and who will work with you. That means meeting about one new REALTOR a day for four months. And then continuing the process on a reduced scale after that--always looking to add to your partner base.
8. Then you must protect your relationship by continuing to produce.
This isn't easy. It's hard work. But your business can really breakout if done correctly. And fortunately for you, if you do it, you can be confident few others will because they simply won't invest the time and energy. - by pmccord
Thank You for that reply, you had some very insightful information. And I truely appreciate it.
What I have learned here is that most people are not going to actually listen to what I asked. They are going to naturally assume because of the nature of the business I am in that I am just like all the rest. This should have ended years ago where someone looked at the color of my skin and maked a judgement, but it seems that the people have not really come that far in the last few hundred years. Sure they have new tools and dress differntly but since they have had bad experiences in the past they expect to have bad experiences in the future. I feel sorry for these people because not only do are they stuck in an old way of thinking they are attracting to themselves those same bad experiences they disliked so much in the past to themselves again in the future.
I suppose they can always say it is not my fault, it is human nature, it is the way I was brought up. It is always easier to blame some one else, just give up, most people do. But those who are leaders, I mean truely great leaders expand their thoughts. Look at problems as opportunities and realize a better life for themselves in both a physical and spiritual sense.
They know it is not easy, and most people will tell them it can not be done, to just be realistic or look at the statisics. Those statistics are full of people who easily give up or listen to the average unuseful advise of others.
I know if someone wants to realize success it is a truely loanly road. Because most do not have the power to see anything different than what has happened to them in the past. But there are a few who do. And I have found they make much better company. - by Jorel
I believe you're comments are spot on Paul. You've really painted a picture that reflects the reality of the situation... at least in my own experience. ;) - by AZBroker
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